MLM (Multi-Level Marketing) and Pyramid scams are fraudulent business models that promise quick and easy income but mainly profit the people at the top. In these schemes, members earn money not by selling real products, but by recruiting new people into the system. A Pyramid scam focuses entirely on recruitment — each new level pays the upper levels, creating a chain that collapses when no new people join. MLM scams often disguise themselves as legal businesses, but when product sales are minimal and income depends mostly on recruitment, they become illegal pyramid schemes. Both scams lead to massive losses for people at the bottom while only early joiners make any profit.
